[Fortescue Surpasses 200 Million MT Annual Iron Ore Shipments for the First Time]

ArcelorMittal has called on the European Union to extend the Carbon Border Adjustment Mechanism (CBAM) starting in January 2026 and the revised Tariff Rate Quota (TRQ) system starting in July 2026 to cover downstream steel products by 2027. The company warned that nearly two-thirds of non-grain oriented electrical steels (NGOES) used for new electric motors and generators in Europe are imported from outside the EU. Failing to protect this downstream value chain undermines the EU's climate policies and risks devastating Europe's strategic manufacturing autonomy amidst subsidized global overcapacity.

The EU has replaced its safeguard regime with a stricter Tariff-Rate Quota (TRQ) system, setting an annual tariff-free volume of 18.35 million metric tons (mt) across 26 categories, which EUROFER believes could restore up to 15 million mt of lost European steel production. However, UK producers warned of market access challenges, noting that over 70% of UK steel exports go to the EU. Although roughly two-thirds of UK exports will remain tariff-free for the next five years, the potential for 50% tariffs once quotas are exhausted highlights the growing friction and complex trade dynamics in post-Brexit supply chains.

In response to the EU's new safeguard system implemented on July 1, which slashed the bloc's overall tariff-free steel import quota by 46% to 18.35 million metric tons (mt), South Korea is launching initiatives to boost domestic consumption. With its country-specific EU quota reduced by 19.7% to 2.07 million mt, the South Korean government aims to create over 510,000 mt of new domestic steel demand by strengthening supply chain cooperation with local shipbuilding, defense, and renewable energy sectors. This strategic pivot illustrates South Korea's proactive approach to absorbing displaced export volumes and insulating its industry from rising global protectionism.